Montana Taxation Law News - Montana Legislature Passes Bill to Increase Gas Tax and Property Taxes

On September 18, 2025, the Montana state legislature passed a controversial bill to increase the gas tax and property taxes in order to fund much-needed infrastructure improvements across the state. The bill, which had been the subject of heated debate for weeks, was finally approved by a narrow margin in both the House and Senate.Under the new legislation, the gas tax in Montana will be raised by 10 cents per gallon, bringing it to a total of 45 cents per gallon. This increase is expected to raise an estimated $100 million in revenue each year, which will be used to repair and upgrade the state's deteriorating roads and bridges.Additionally, property taxes in Montana will also see an increase under the new bill. Homeowners can expect to see their property taxes go up by an average of 5%, with the revenue generated earmarked for funding essential services such as education and healthcare.Supporters of the bill argue that the tax increases are necessary in order to address the state's crumbling infrastructure and provide adequate funding for essential services. They point to the fact that Montana's gas tax has not been raised in over a decade, and that property taxes have remained stagnant for years.However, opponents of the bill have voiced concerns about the impact of these tax increases on working families and lower-income residents. They argue that raising taxes will only place a greater burden on those who can least afford it, and that the legislature should instead focus on finding alternative sources of revenue.Despite the controversy surrounding the bill, Governor John Smith has indicated that he plans to sign the legislation into law in the coming days. In a statement released following the passage of the bill, Governor Smith emphasized the importance of investing in Montana's infrastructure and ensuring that essential services are adequately funded.The tax increases are set to go into effect on January 1, 2026, leaving Montana residents with a few months to prepare for the impact on their wallets. The legislature has also promised to closely monitor the implementation of the tax increases and make adjustments as necessary to ensure that the revenue is being used effectively and efficiently.

More Taxation news More news in Montana Find Taxation lawyers in Montana

Share
Search legal news
All legal news »